Crude Oil Trades Sideways - Buckle Up for a Breakout Setup! - Forex News by FX Leaders

Crude Oil Trades Sideways – Buckle Up for a Breakout Setup!

Posted Tuesday, March 27, 2018 by
Arslan Butt • 1 min read

WTI Crude Oil is lollygagging in the narrow trading range before the release of API report today. Earlier, the Crude Oil prices were under pressure amid rising drilling activities in the United States, but not anymore. Here’s a quick trade plan…

WTI Crude Oil – Fundamental Review

The ongoing fears of a trade war between the United States and China, the world’s two biggest economies, are underpinning the crude oil.

As you know, there’s a negative correlation between US Dollar and the Crude Oil prices.  The weaker dollar makes the Crude Oil cheaper for international consumers and they increase the demand for Oil which ultimately increases the prices of Oil.

In addition, the Crude gained support from OPEC members as Saudi Arabia and Russia restated goals to extend the output cut agreement.

WTI Crude Oil – Technical Outlook

Looking at the 60 – Min chart, the Crude Oil is facing a solid support near $65.40. The number of Doji and Spinning Top candles are signifying the neutral sentiment of investors. It’s mostly because of the API report which is due to be released during the US session today.

WTI Crude Oil - Hourly Chart

WTI Crude Oil – Hourly Chart

WTI Crude Oil – Trading Plan

I will be looking to stay bullish above $65.40 with a stop below 65.20 and a take profit of $66.45. Good luck!

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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